Abstract

Social networks and social media are changing the way customers interact with companies across the globe. For some organizations, social networks are central to their marketing efforts, but are they here to stay?

In a new report, Leveraging Social Networks, Celent reviews the current usage of social networks by insurers and looks at the broader social networking trends that will drive innovation in insurance in the future. Many insurers are already testing the waters in the world of social networks, and best practices are only beginning to emerge. Adoption is much higher for insurers in the United States when compared to the UK, where interaction is rare and adoption is just starting.

“News in March 2010 reported that Facebook was the most visited website in the US, having more visits than Google for the first time,” says Catherine Stagg-Macey, Senior Analyst with Celent’s Insurance Group and coauthor of the report. “This announcement heralds the arrival of social networks.”

“There are lessons to be learned from the UK and financial services aggregators, where there are examples of insurance-related brands having far greater success with social media,” says Craig Beattie, Analyst with Celent’s Insurance Group and coauthor of the report.

This report aims to provide an overview of social networks and their use by businesses, and reviews current trends, influences, and the future of social networks. The report looks at the opportunities and risks surrounding the usage of social networks for both customers and insurers. In the final chapter, the report provides a set of guidelines on how insurers should use social networks and social media.